Telefónica restructure is welcomed by market

Telefónica shares surged on Thursday after it announced it was reorganising its business to stem off a decline in its value.

Directors of the Spanish telco and communications giant said that in the future it would concentrate on its businesses in Spain, UK, Germany and Brazil, which represent 80 per cent of its sales.

Its other Latin American subsidiaries will be grouped into a separate division as the firm deprioritises those markets.

Two further new divisions will be set up; Telefónica Tech to focus on new technologies like cloud; and Telefónica Infra for its infrastructure network.